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Selling: capital gains and their tax
How long you hold changes the outcome of a purchase more than the entry price does. Four regimes, four horizons.
3 min readChecked on 19 August 2026
In brief
- Main residence
- In principle exempt in all four countries, subject to occupation
- Luxembourg
- Reduced rate beyond a holding period, with the acquisition value adjusted
- France
- Tapered relief: full exemption is counted in decades
- Germany
- A speculation period beyond which a private gain leaves the tax net
The main residence is the simple case
In all four countries, selling the home you live in is in principle outside capital-gains tax, subject to genuine occupation. That is why the question really only arises for a rental property, a second home, or a home left long ago but kept. The conditions — how long since you moved out, why you are selling — are exactly where files get complicated.
Luxembourg rewards holding on
Beyond a holding period, the gain on a property that is not the main residence is taxed at a reduced rate compared with the scale, with allowances and an inflation adjustment to the acquisition value. The regime has been the subject of temporary measures in recent years, in one direction then the other, to support the market: the applicable rate depends on the year of sale as much as on the holding period. Have it confirmed before fixing a signing date.
The neighbours count in years
France applies a holding-period allowance that gradually removes income tax and then social levies, over long horizons — full exemption is counted in decades. Germany works differently, with a speculation period beyond which a private gain leaves the tax net. Belgium taxes quick resales above all. Three different logics, one shared lesson: the purchase date weighs as much as the purchase price.
A cross-border seller declares on both sides
A French, Belgian or German resident selling a property located in Luxembourg is taxed in Luxembourg on that gain, and reports it in the country of residence under the applicable treaty, generally with a mechanism that avoids double taxation but affects the rate applied to the rest of their income. The reverse holds too. This is not an exotic case: it is the ordinary case of someone who bought on one side of the border before moving to the other.
What to do
- Find the purchase deed and the works invoices: they raise the entry value taken into account.
- Check the holding period before fixing a signing date — a few weeks can change the regime.
- Ask the notary for a projected statement of the tax due, country by country.
- Plan for the declaration in the country of residence even when the tax is paid elsewhere.
Common questions
I moved out two years ago — is it still my main residence?
It depends on the country and the reason for leaving. Several regimes accept a reasonable gap between moving out and selling, provided the property was not let in the meantime. This is precisely the point to check before listing, not after.
Am I taxed twice selling in Luxembourg while living in France?
In principle no: the treaty gives taxing rights to the country where the property sits, and the country of residence applies a double-taxation relief mechanism — which can still affect the rate applied to the rest of your income. You must declare on both sides.
Do selling costs reduce the gain?
Generally yes, within limits and against evidence: agency commission, surveys, sometimes certain works. The rules differ between countries and are proved with documents — keep the invoices from the purchase rather than hunting for them ten years later.
Worth a look on this site
Official sources
- Luxembourg direct tax authority
- impots.gouv.fr — property capital gains
- Belgian federal finance service
The amounts, thresholds and rates quoted change regularly, sometimes mid-year. Check them against these official pages before deciding anything. Checked on: 19 August 2026.
